Emergence of Indian Co's I

Over the last four years the Indian economy has been growing at a blistering rate of 8 per cent per annum. The reason for this are many, the unlocking of the potential by the government by privatisation, liberalisation and globalisation. Nowadays indian companies are aquiring companies across the world be it in the manufacturing sector or the services one. The latest statistics on overseas investments puts the figure at $8 billion for the 2005 FY. the latest one bieng the aquisition of eight o clock by the home grown biggie Tata cofee. since the lowering of interest rates during the 1990s several indian cos have restructured their debt and stiff competition from the MNC's has ensured that the cos have the best practices and this has given them a huge confidence. so now they have taken the battle to MNC's own backyard.

The liberalisation of the capital markets ensured that many co's could get themselves listed on the domestic as well as international stock exchanges. this helped indian co's to procure capital at cheaper rates. Today, with booming stock markets (even after the recent falls) many indian co's never had a better time. the sources of capital too have vastly increased. the private equity, which is an important source for startups have been growing too. Some of the indian companies like east india company are raising capital from non traditional sources like the 'blank cheque' public offering. high stock prices during the last couple of years helped co's to borrow overseas using hybrid products like the FCCB at low rates (off course with the help of Fed). the loosening of the overseas borrowing rules only helped the cause.

the traditional strengths of the industrialized economies like highly educated labor force or the abundance of capital are no more, foprcing their co's either to come to developing economies or vanish.....